Millennial spending that gets mocked, from trips and weddings to gym memberships and therapy, often pays back in happiness, status, time and peace of mind, as long as it still makes financial sense. Millennials get a bad rap: the avocado-toast generation, behind on home ownership and retirement saving. It sets out to bust some of those myths with two explanations for their spending. It is a sign of the times, with costs and values shifted, and they are learning from earlier generations what not to do.
It adds that their habits mirror the findings of Harvard’s long-running study of adult development, which started in 1938: nurturing relationships, having new experiences and helping others raise long-term happiness. Here are the 15 expenses it defends.
Watch the full video here, or skip to the breakdown below.
The 15 worthwhile expenses at a glance
- Great experiences over tangible assets (2:02)
- Great aesthetics, captivating presentations, memorable impressions (3:07)
- Early investment into passion projects (4:06)
- Launch prices for an elevated status (4:48)
- Tailored control over digital consumption (5:59)
- Food as an activity, beyond a necessity (8:27)
- People and resources that motivate and inspire them (9:35)
- A wedding to remember (11:03)
- An expensive new hobby every few years (12:03)
- Pricey brands that match their values (12:40)
- Small treats that add up to a good life (14:03)
- Mental health and therapy (15:33)
- Exclusive gym memberships (16:36)
- Things that save time and make life easier (17:53)
- Peace of mind knowing important things are taken care of (18:57)
1. Great experiences over tangible assets
Travel used to be a treat for people with 40 years of work behind them, who saved for decades toward one big trip. For most millennials, travel sits inside the monthly budget: two or three big trips a year, plus weekend breaks.
Critics call it frivolous, yet the contentment is undeniable. Home prices have doubled in four years, so many buy trips instead of houses. There is no reason, the argument goes, to wait years to be happier. The expense is large now and pays dividends later.
2. Great aesthetics, captivating presentations, memorable impressions
Check what people spend on skincare, luxury brands, makeup and furniture and you see where millennial money goes. A 40-year-old in the 1980s and one today look about two decades apart. Outfits are planned, and homes have continuity in colour, texture and style.
How you look reflects who you want to be, and how your home looks should reflect how you want to feel. A well-made living space supports mental wellbeing and productivity, even if you rent.
3. Early investment into passion projects
Earlier generations restored a vintage car, did DIY or collected memorabilia in retirement, once they were settled, wealthier and the children had left. Millennials have thrown out that timeline.
If you love something now, do it now. It may eat into your paycheque, but it expands your happiness.
4. Launch prices for an elevated status
The latest iPhone, MacBook, a drink at an exclusive bar or dinner at a Michelin-starred restaurant can look wasteful. The value, per the script, sits in the impression and the story you tell: that you have your life together, prioritize quality and want progress in every area.
Tell the right story and you attract the right people. It might mean ramen for the rest of the month, which is fine if the story fits your bigger vision. It still has to make financial sense, and the audience should be people who bring, or will bring, value to your life.
5. Tailored control over digital consumption
People value privacy and control in the digital world, and the video points to Telegram’s one billion active users as a sign that consumers do not want their data and conversations sold or open to manipulation.
With digital crime rising, hackers, scammers and phishing sites hunt for holes in your armour, so millennials will pay for tools that protect private and financial data. Losing savings to a malicious site, the video says, does happen.
6. Food as an activity, beyond a necessity
The video claims delivery services are a scam and that a restaurant gives far more for the same price: service, ambience, music and setting, all of it a unique experience. It adds that the restaurant industry is seeing record profits, with millennials filling the chairs.
They cut saving budgets to splurge on a good meal with great friends, which can sound reckless, but social interaction is central to happiness. Food that arrives smoking or on fire gives you something to anticipate and remember. They are investing in the experience.
7. People and resources that motivate and inspire them
The motivation industry was estimated at 43.7 billion dollars in 2022, forecast to grow at a compound annual rate of 5.5% from 2023 to 2030. Books, speakers and courses are not cheap, and the video says the spend is worth it.
Apps and events let you hear from people who share your values, learn from their experience and absorb their stories. The Alux app is one example: it offers experts on topics from becoming a successful soloproneur and starting with your finances to dealing with a narcissistic parent and mindfulness in a fast-paced world.
Motivation and inspiration bring a wealth of enjoyment and excitement to your life.
8. A wedding to remember
Wedding costs, and what millennials will pay, have drawn heavy criticism. Most newlyweds spend around 30,000 dollars, far more than earlier generations, and millennials are likelier to pick destination weddings, week-long programmes, and expensive clothes and decor.
The counterargument is that it is a once-in-a-lifetime event where families and friends come together to celebrate love. It may be one night, but the memories last, and you want them filled with the dress, the music and the decor you love.
9. An expensive new hobby every few years
Hobbies are costly, and millennials often switch interests every few years, which means gear, club fees and more expense.
Weigh that against what you get back: social interaction, physical and mental activity and a productive use of time. You end up happier, healthier, less stressed and more active, and the net benefit is far greater than the cost.
10. Pricey brands that match their values
Fast fashion still dominates, but smaller eco-friendly and sustainable brands are rising. They cost more and are worth it when they support a more sustainable environment and fair pay for workers.
Millennials are scaling back to buy better quality, which lowers cost per use. They will save for months for something durable and timeless. They started a movement that other generations are joining, the script argues, and spending power should sit where your values do.
11. Small treats that add up to a good life
Daily coffees, beauty treatments, supplements and healthy food add up, but they also make you more confident and relaxed and give you something to look forward to after a hard week. In a fast-moving world, they ground you.
Growth in these small-treat purchases is levelling off as people realize they can recreate them at home. A premium coffee maker and good beans give you the experience and joy while you hold on to some control of your money.
12. Mental health and therapy
Media coverage tends to be kinder about spending on therapy than the muttered comments from grandparents and older relatives, who come from a generation told to pull themselves up by their bootstraps. For them there was no space, or money, to deal with the past.
Millennials, it argues, showed there is more than one path to happiness and success, and that it is fine to make choices that go against expectations and to live honestly instead of suppressing strong emotions.
13. Exclusive gym memberships
Telling someone to just go for a run is outdated. Exclusive gyms offer equipment and interactive classes plus saunas, rooftops, coworking spaces and weekly events. They are cleaner, and members share goals and values, which helps networking.
One chain is compared to a luxury apartment complex you would need a recommendation to live in, except that anyone able to pay the monthly fee can join. You get friendships, accountability and a space away from home that helps when the rest of life feels overwhelming.
14. Things that save time and make life easier
Grocery or food delivery, on-demand laundry and home cleaning get called extravagant. They are worth it, it says, when they save time, one of your most valuable assets, and you use that time to earn more.
The condition is clear: your hourly value must exceed what you pay the person you hire. Spend more per hour than you make and you lose out in the long run.
15. Peace of mind knowing important things are taken care of
Health insurance, IV drips and regular checkups for yourself. Dog hotels, doggy daycare, pet insurance and weekly grooming. Millennials pay for the peace of mind of knowing what matters to them is safe and protected.
Other generations did it as well, but millennials go a step further. Health, friends, family and pets get the highest quality of life and protection they can afford, even through a subscription.
What the pattern says
Across all 15, the common thread is spending on happiness, status, time or security instead of waiting for a future that may arrive late. Whether you agree is a fair debate, and the video closes by asking which generation you are from and whether these habits make sense or are nonsense.
The checks to keep: it has to make financial sense, the time you buy has to be worth more than the price, and the impression should serve the people who matter to your life.
FAQ
Why do millennials spend differently from earlier generations?
The video gives two reasons: costs and values have shifted, so choosing where to spend feels like control, and they are learning from earlier generations what not to do.
What does the long-running Harvard study say about happiness?
The study, which began in 1938, found that nurturing relationships, having new experiences and helping others raise your happiness in the long run.
When does paying for convenience make financial sense?
When the price is lower than what your time is worth and you use the freed hour to earn or build something. Paying more per hour than you make is a long-term loss.
Are expensive gym memberships worth it?
The video argues yes for some people: they add community, accountability, networking and a comfortable space away from home on top of equipment and classes.
Why spend on experiences instead of buying a home?
The video says home prices have doubled in four years and income has not kept pace, so many choose travel and experiences that make them happier now.
Keep reading
- People Who Spend Money On Experiences Instead Of Things Are Happier
- 15 Expensive Things That Are Worth The Money
- 15 Things You Should Not Spend Money On
